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The concept of core competences is key to successful outsourcing strategy. Organisations should:
focus on core competences and outsource non-core competences to external firms that can add more value.
focus on non-core competences in order to drive down the cost of non value adding activities.
focus on core competences by outsourcing these functions to external firms that can add more value.
focus on non-core competences by applying transaction cost theory to external firms.
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